Giardetti, a retailer, placed an advertisement in a local newspaper on May 5^th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10^th at a sale price of $100 each. Regular price $199. First come, first served!" Don was the 10^th customer in the store on May 10^th, but Giardetti refused to sell him a TV set for $100. If Don had seen the notice on the shop door on May 9^th; he could still accept the offer, because the offer was irrevocable.

The acid-test (quick) ratio

A) is used to quickly determine a company's solvency and long-term debt paying ability.
B) relates cash short-term investments and net receivables to current liabilities.
C) is calculated by taking one item from the income statement and one item from the balance sheet.
D) is the same as the current ratio except it is rounded to the nearest whole percent.

Which of the following would be classified as an internal failure cost on a quality cost report?

A) Rework labor and overhead.
B) Cost of field servicing and handling complaints.
C) Technical support provided to suppliers.
D) Lost sales arising from a reputation for poor quality.

The most expensive management function for a nonprofit organization is ______.

A) planning
B) marketing
C) research and development
D) human resources management

The higher prices charged by monopolists:

A) are like a private tax that redistributes income from consumers to monopoly sellers.
B) are socially optimal because they better reflect how much society values the good relative to the resources used to produce it.
C) return to consumers through the public goods provided by monopolies.
D) have no effect on the distribution of income.

A lump-sum tax,such as the fee for a driver's license,does not take into consideration:

A) efficiency.
B) the benefits principle.
C) the ability-to-pay principle.
D) the tax base.